Zefiro Methane earns $665,401 in Q1 2026

Executive Summary

• Zefiro Methane Corp. reported record quarterly financial results for the first quarter of fiscal 2026 (ended Sept. 30, 2025), achieving $12.1 million in revenue, a 21% increase over the previous record.
• The company posted positive net income and free cash flow, driven by a 21% revenue increase and a $1.3 million decline in operating expenses, resulting in record EBITDA of approximately $2.6 million.
• Recent operational highlights include a new federally funded project in Ohio for 37 orphan wells, a two-year well retirement contract, and the successful sale of carbon offsets, alongside the repayment of two promissory notes totaling $450,000.

Key Details

• Revenue: Record quarterly revenue of approximately $12.1 million, representing an approximately 21% increase over the first quarter of fiscal 2025.
• Operating Expenses: Total operating expenses declined by approximately $1.3 million to $3.1 million (down from $4.4 million in Q1 FY2025).
  • General and Administrative (G&A) expenses decreased by approximately 47% from $1.03 million to $550,000.
  • Salaries and benefits decreased by approximately 16% from $1.33 million to $1.12 million.
• EBITDA: Record quarterly EBITDA of approximately $2.6 million.
• Net Income/Flow: The quarter resulted in positive net income and free cash flow.
• New Projects: Awarded a second material federally funded project in Ohio consisting of 37 orphan wells; operations expected to begin in November 2025 and continue through spring 2026.
• Contracts: Secured a two-year well retirement contract with a top-tier industry operator.
• Carbon Offsets:
  • In August 2025, completed the first publicly announced sale of carbon offsets from ACR project 959 (ACR959), delivering credits to Mercuria Energy America LLC.
  • Verified reduction of 92,956 metric tons of CO2.
  • Subsequently delivered carbon credits to two additional strategic buyers.
• Debt Repayment:
  • September 2025: Repaid and retired a $350,000 promissory note from X Machina Capital Strategies Fund I LP.
  • November 2025: Repaid and retired a $100,000 promissory note from X Machina Capital Strategies Fund I.
• Outlook: Preliminary October results indicate one of the highest revenue months in company history; future free cash flow for the next six months is prioritized toward debt reduction and strengthening the balance sheet.

Notable Quotes

• "This performance reflects the effectiveness of Zefiro's new management team, and our strategic focus on revenue generating business lines. We have conducted a thorough review of all expenses and implemented measures to eliminate unnecessary spending. Alongside these decisive cost-cutting initiatives, the team has executed strongly in the field, driving revenue growth through improved operational performance. By streamlining operations and maintaining a sharp focus on efficiency, the Company has strengthened its financial foundation and is well positioned for sustained profitability and growth as it enters fiscal 2026." — Catherine Flax, Chief Executive Officer